Drop Ship Procedures Revised May 2013

1. Drop Ship ProceduresRevised May 2013 Presented by: The Clinical Services Formula Team

2. Needed materials • Policy • FD 18.0 Drop Shipment of Formula and Medical Nutritional Products (last revision 2012) • Procedures • WIC Formula Drop Ship Procedures – dated May 2013 (last revision March 2012)

3. Needed materials • Drop Ship Checklist • Revised for 2013 • Formula Code List (most recent version) (Includes packaging challenge items shaded in gray) Available at: http://www.dshs.state.tx.us/wichd

4. Objectives • To review step by step procedures for drop shipment. • To prevent errors resulting in local agency payment for formula.

5. Reasons for drop shipment • The formula is not available locally. • The formula is not available locally in 3 days or less. • The local vendor is not willing to sell it for the “Not To Exceed Price”. • The local vendor is unwilling to break cases resulting in substantial shortage of formula quantity.

6. Ways to obtain formula locally • To avoid drop shipment consider the following: • Local pharmacies approved to accept WIC Lone Star card (EBT card). These may be within a grocery store. • WIC only stores • Drop ship/medical supply vendors with walk-up locations

7. Please note • Standard infant formula (milk or soy-based) should not be drop shipped. • This includes both contract and non-contract standard infant formula in all forms. • See the most recent list of standard formulas posted at: http://www.dshs.state.tx.us/wichd/nut/foods-nut.shtm • Contact the pager for assistance if these products are not locally available.

8. Changes to drop shipment • The Drop Ship order form is now generated in the TWIN system/formula exchange module. • EBT card/pin is needed to print. • Client and issuance information is pre-populated.

9. Changes to drop shipment • Additional information such as order date and price require manual entry. • The computer generated partial manual entry form has replaced the fully manual entry form.

10. Communication /organization • Designate the appropriate staff member for each task. • Communication between staff members should be clear/documented. • Organize a file - past, present and future orders should be accessible to all staff. • Keep a copy of the procedures with the file.

11. Summary of procedures • Approval and issuance • Preparing and printing the form • “Do not buy” statement • Completing the form • Ordering and receiving formula • Faxing the signed order form

12. Summary of procedures • Subsequent orders or formula changes/exchanges • Record keeping • Drop ship errors • Key steps in drop shipment (summary)

13. Approval and issuance • CA approves request • Authorizes formula code, name, quantity and supplemental food issuance. • Determines if drop shipment is required.

14. Approval and issuance • Check Formula Code List for items shaded in gray which may have packaging challenges • Contact the formula pager for assistance with ordering. • It may be necessary to decrease the amount ordered.

15. Approval and issuance • Formula requirements • The formula code, name, and quantity are pre-printed • Choose codes with care. • Some formula names may be similar, for example: • PediasureEnteral • PediasureEnteral with Fiber

16. Approval and issuance • Issue benefits to the EBT card and print the shopping list. • Use the formula exchange module (FEM) to adjust quantity or to issue multiple formulas. • The Drop Ship Order form is printed from the FEM.

17. Preparing and printing

18. Preparing and printing

19. Preparing and printing • If benefits are on the card for additional months, print a form for each month available at this time. • Note: Drop ship order forms cannot be printed when the EBT card is not in the clinic • Set aside the forms for manual completion later.

20. Do not buy statement • Participant is told not to buy the formula with their EBT card. • They acknowledge this by signing the “Do Not Buy” statement written on or attached to the shopping list.

21. Do not buy statement • Clinic keeps and files a copy of the signed statement and shopping list. • Participant keeps the other copy of the shopping list. • The participant’s copy does not have to be signed.

22. Completing the order form • Clinic completes the “To be completed By WIC Clinic” section of the drop ship order form. • The following fields will be pre-populated by TWIN: • Benefit Month • LA/Clinic • Clinic phone number

23. Completing the order form • Pre-populated fields continued • Participant’s name • PAN • Name of formula, size and form • Formula code • Formula quantity Note: Verify that the pre-printed information is correct

24. Completing the order form • Determine where to order the formula and obtain the price per item. Shipping charges (if any) are recorded separately. • Each month, confirm that the formula is in stock and that the price is the same before placing each order. • Once you choose a vendor, you can continue to use them.

25. Completing the order form • Drop ship vendors • MEDCO Medical Supply (Houston): • 1-800-755-2432 • Star Medical Specialties (Addison): • 1-800-368-2065

26. Completing the order form • Set an appointment for pick-up or plan to call when formula arrives. • Remind participant that formula will be returned in about 7 days if not picked up or no contact. • Participant may leave clinic at this time.

27. Completing the order form The following fields need to be manually completed: • Date of order • Clinic contact (staff name) • Vendor store name • Vendor store number • Vendor representative name • Vendor fax number

28. Completing the order form • Unit price of formula (obtained from vendor during phone call • Special shipping instructions (if needed) • Delivery information such as clinic closed on Fridays, preferred delivery times, or specific flavors requested. • Make sure all fields on form are complete and correct.

29. Ordering and receiving formula • Fax the order form to the vendor. • Verify that the vendor received the fax. • Keep a copy of the confirmation. • Keep this original order form with the top portion completed available. You will need it again later.

30. Ordering and receiving formula • After delivery, staff signs and dates the original order form. • Staff opens boxes, counts containers. Check: • Correct formula? • Correct quantity? • Undamaged? • Circle Y or N as appropriate. • If any are N, contact vendor and/or state pager.

31. Ordering and receiving formula • The participant should be contacted by phone and/or mail at least 3 times before making arrangements to send the formula back to the vendor. • Keep track of contact attempts and results.

32. Ordering and receiving formula • If you are unable to reach the participant for 7 calendar days, contact the vendor, and prepare the product for return shipment. Contact the pager for assistance. • Do not keep the formula in the clinic after the benefit month ends.

33. Ordering and receiving formula • At time of pick up, the participant must sign the Original WIC Drop Ship Order Form (not the packing slip.) • Make sure the benefit month printed on the top is the same month as the signature.

34. Ordering and receiving formula • Formula claims cannot be paid without the participant’s signature. • If the signature is not received by the SA in time for claim payment, LA must reimburse vendor for the formula cost (including shipping.)

35. Ordering and receiving formula • Compare the EBT card PAN to the PAN that is printed on the drop ship order form. • If the PAN’s do not match, the claim will not be paid. • This may happen if the card was hot-carded between order and pick up.

36. Ordering and receiving formula • If the PAN number has changed: • Cross out the old PAN (strike out with one line) and legibly write the new PAN below or next to the old PAN. • Include a brief note of explanation of why the PAN has changed, e.g. lost card, custody change, etc.

37. Ordering and receiving formula • Print new order forms for all other months with benefits at this time. • Shred any forms with the old PAN that will not be used.

38. Ordering and receiving formula • Formula may be picked up on or after the first day of the benefit calendar month and no later than the last day of the benefit calendar month. • If formula is given out before the benefit month begins or after it ends, the LA will be required to pay the vendor.

39. Faxing the signed order form • After pick up, the original, signed WIC Drop Ship Order Form for the current month shall be immediately faxed to the vendor. • The fax must be received no later than the last day of the benefit month. • Call to be certain the fax was received. • Keep the confirmation of this fax.

40. Vendor only - Claim payment • The vendor then fills out the “to be completed by vendor” section of the order form and mails the form to the state agency for claim payment. • Signed form must be received and entered no later than the 15th of the month following the benefit month. • Example: Jan order received and entered by SA by Feb 15th.

41. Subsequent orders/changes • Must have a pre-printed order form for the correct benefit month with correct issuance information. • Ordering and shipment may occur prior to the first day of the benefit month.

42. Subsequent orders/changes • For example: • Client comes in January 10 and is issued formula for January, February and March on the EBT card. • Order January formula now. It can be given to participant between now and January 31st.

43. Subsequent orders/changes • February formula can be ordered prior to February 1st. • It must be picked up between February 1st and 28th. • Be careful. If formula is given after the benefit month ends, the State Agency cannot pay for it.

44. Subsequent orders/changes • Contact participant to make sure formula is still needed. • Contact vendor to make sure formula is in stock and price has not changed. • For changes: Approve, exchange/change, print new order form for all appropriate benefit months. • Shred old forms not needed.

45. Record keeping • Develop a method to help you remember when to order for next month. • Suggestions: • All recurrent drop ship orders may be placed on the 25th. • All recurrent drop ship orders may be placed on the last Friday of the month.

46. Record keeping • Develop a method for keeping track of all orders. • A completed order file, current order file and future order file is recommended. • Keeping a participant file at your desk with drop ship info is not recommended.

47. End of the month considerations • Contact the formula pager for assistance with current month orders during the last 4 days of a calendar month. • It may be best to order formula for the next calendar month and not the current month.

48. More on formula changes • If the formula changes before the participant picks it up, call the pager for assistance. • If the formula has been picked up by the family and now needs to be exchanged, treat it like any other formula exchange. • Do not send the formula back to the vendor after the parent has signed for it.

49. More on formula changes • Drop shipped formula is not debited from the EBT card and returned formula cannot be accounted for by using the card. • Record returned formula on the appropriate returned formula log form. • Keep documentation of the transaction with the drop ship order form. • Contact the formula pager for assistance.

50. Drop ship errors • Pre-payment errors • Order form incomplete. • Order form used for the wrong month. • Formula given to participant before benefit month begins or after it ends.